Valley Company$$s adjusted account balances from its general ledger on August $31,$ its fiscal year$-$end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense$$selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances Debit Credit

Merchandise inventory $($ending$)$ $ $41,000$

Other $($non$-$inventory$)$ assets $130,400$

Total liabilities $ $25,000$

K$.$ Valley, Capital $104,550$

K$.$ Valley, Withdrawals $8,000$

Sales $225,600$

Sales discounts $2,250$

Sales returns and allowances $12,000$

Cost of goods sold $74,500$

Sales salaries expense $32,000$

Rent expense$$Selling space $8,000$

Store supplies expense $1,500$

Advertising expense $13,000$

Office salaries expense $28,500$

Rent expense$$Office space $3,600$

Office supplies expense $400$

Totals $ $355,150$ $ $355,150$

Beginning merchandise inventory was $$25,400.$ Supplementary records of merchandising activities for the year ended August $31$ reveal the following itemized costs.

Invoice cost of merchandise purchases $ $92,000$

Purchases discounts received $2,000$

Purchases returns and allowances $4,500$

Costs of transportation$-$in $4,600$

Required:

Prepare closing entries as of August $31($the perpetual inventory system is used$).$